Current through Register Vol. 51, No. 6, March 22, 2024
A. Application. An application for financial assistance shall be made on standard forms required by the Department. Each application shall include:
(1) A detailed local strategic plan for economic development for the qualified distressed county, approved by the relevant officials of the qualified distressed county or municipal corporation;
(2) A marketing plan designed to market the project to prospective businesses and a statement of planned marketing expenditures as a percent of the total financial assistance amount requested;
(3) A site plan for the project that is consistent with the county's local strategic economic development plan as to the location and type of project;
(4) The total amount of funds required for the project;
(5) The amount and type of funds available to the applicant without financial assistance from the Department;
(6) The amount of financial assistance sought from the Department and a description of the applicant's proposed use of proceeds;
(7) Information concerning the compliance of the applicant with State Finance and Procurement Article, Title 5, Subtitle 7B, Annotated Code of Maryland, concerning priority funding areas, including a written statement from the applicant that the project is located within a certified priority funding area or meets an exception;
(8) Information that relates to potential security for the loan;
(9) An environmental study on the project site;
(10) An "as built" appraisal of the project; and
(11) Any other relevant information the Department requests.
B. Initial Review. The Department shall subject each application to an initial review for a preliminary determination of the applicant's eligibility in accordance with this chapter.
C. Approval. The Secretary may not approve financial assistance for a project under this chapter unless the Secretary approves the local strategic plan for economic development, the marketing plan, and the site plan for the project submitted with the application.
D. Fair Distribution. In approving financial assistance, the Secretary shall consider the aggregate amount of financial assistance that may already have been provided for a particular qualified distressed county under this chapter and under any other State economic development program to ensure that a particular qualified distressed county does not benefit disproportionately from financial assistance under this chapter.
E. Loan Documents.
(1) The Department shall prepare and provide the applicant with copies of relevant loan documents.
(2) Loan documents shall include:
(a) The rate of interest on the loan;
(b) The amount of the loan;
(c) Provisions for repayment of the loan; and
(d) Other provisions the Department determines are necessary to secure the loan, including, if applicable, the taking of liens and security interests in real and personal property.
(3) Loan Agreement.
(a) Each loan agreement under this chapter shall include a provision for repayment of principal to begin only after the project is initially occupied.
(b) The Secretary may include in a loan agreement under this chapter a provision for payment of interest to begin only after the project is initially occupied.
(4) Loan documents may include those provisions the Department may require.
F. Fees. The Department may require the applicant to pay for expenses incurred in processing and closing the financial assistance, such as fees for appraisals and credit reports.
G. Violations. If an applicant violates any provision of the financial assistance documents or ceases to meet the requirements of the Act, the Department may:
(1) Withhold from the applicant further advances of proceeds until the applicant complies with the agreement or requirements; and
(2) Exercise any other remedy for which the financial assistance documents provide.
H. Fund Limitations. The faith and credit of the State are not pledged to the Fund.
